For the last 4 months I've had the displeasure of looking at the markets (my position) and feeling a knot in my stomach, but then I get on with my day and often, I add to my position.
Today is another one of those days.
"We are in a trade war"
Those are the headlines. That's all you hear.
What is a trade war? It is a made up term.
What we are seeing is a realignment of economies.
More production in the U.S. More domestic consumption in China. And probably higher prices for U.S. consumers and higher incomes for Chinese people.
On a small fraction of the economies of both countries.
Did you know that China's economy is growing at 6.8%? You wouldn't know it by looking at the headlines and the markets, particularly the Forex market where the yuan is getting sold daily.
Are things freezing up?
Are banks not lending?
Are firms shedding workers?
Are governments engaging in a new round of full-blown austerity?
The answer is no to all of these.
This does not stop the markets from doing whatever it is they are doing.
Do I wish I was short gold and commodities and long the dollar?
No, I do not. I don't think like that. I never second guess. That doesn't mean I don't analyze what is going on and try to make rational sense out of it, but I don't second guess. It's not good Mental Game, to "wish" you were doing what everyone else is doing.
